Mr Philip Milton, Managing Director of Philip J Milton & Company Plc, Barnstaple, has sent a message to all workers in North Devon and beyond, which is to join pension schemes as soon as they are available to them!
Recent figures show that nationally, ‘auto-enrolment’ pensions (for employees) now exceed 10million people but this is only one-third of the UK’s workforce. A large proportion of the workforce is either self‑employed (of which the South West has many), do not earn the minimum £10,000 to qualify (again hitting the South West as one of the lowest paid regions) or are under 22. Employees may also have opted out as they have an existing salary-related pension or other pension arrangement in place and that includes unbeatable schemes like the NHS and other public sector employers.
“Auto-enrolment has proved a huge success for the country as it was clear that without this, too few were choosing to save for their retirement. State pensions will never be enough nor affordable by the State to meet most people’s real wants. Now, with employees opted-in automatically and forced to opt-out if they don’t want them and the fact that employers must also contribute to the pension, more employees are staying put!
You need to learn to see pensions in a different light. They are now very cheap financial products and you can almost put pretty much anything you want into them too! Your payments receive tax relief on the way in, your pot grows free of all tax, your employer contributes for free, it is a form of free life insurance for your nearest and dearest and you could use the whole lump sum even to repay a mortgage if you want. Why do people not use them? The older you are then the dafter it is not to have one as you can grab the whole pot from age 55! Up till 75 you can even buy a personal pension if you don’t work or are retired!
The news is great but the figures show there are still many missing out. It is absolutely imperative you put something aside for later life, however little that may seem. It is not sensible to rely upon the State nor upon future inheritances or the unlikely lottery or Premium Bond prize! We are very happy to offer personal advice to everyone and have been doing so now for approaching thirty-four years. Many tell me that their home (or rental property) is their pension, which concerns me greatly when considering the tax implications and how time consuming and costly it can be to release money tied up in bricks and mortar – which can also plummet in value. Pensions are a wonderfully tax-efficient way to accumulate a pot for retirement and there are very few restrictions on accessing your pot, whether through a tax-free lump-sum or retirement income. On death, family can also inherit any remaining pension free of tax.”
On behalf of Philip J Milton & Company Plc
For further information or photo, please contact 01271 344300 – Email info@miltonpj.net
Mr Philip Milton
Managing Director
